The Importance of Document Verification in Improving Business Outcomes

Introduction

Business document verification enables its authenticity and legality. It could take a while to verify the background of your newly hired employees, freelancers, or part-time workers. It is also required to verify the reliability of a business entity and its ongoing operations.

Most startups undergo document verification before investing in new ventures, hiring new directors/promoters, or raising funding from investors. 

So, here’s the importance of document verification and determining whether it’s the right time for you to initiate it. 

What are the principles of document verification?

1. Obtain consent from applicants

Startups must obtain the necessary consent from applicants before rolling out the document verification process. This ensures that the applicants’ data remains intact and protected. The applicant must also know the purpose and scope of the data and document verification process. 

2. Protect the user’s data

Safeguard the user’s data and ensure each process you partake in for document verification remains encrypted. Protect the server and system with GDPR compliance, share data only when highly required, and do not click on non-verified links. 

3. Ensure to remain fair and accurate

Do not use discriminatory practices, such as favoritism, prejudice, etc., when verifying documents for a party or a user. Once the evidence is out of malpractice or bad intentions, the contract will be null and void. 

4. Be transparent about verification steps

Let candidates and clients know the steps involved in the verification process. Do not let them be in the dark and know nothing about it. Share concerns with them, if any. Solve their queries on document verification and improve internal and external communication. 

What is the importance of document verification for business owners?

1. Improved customer acquisition and attraction

You can use features such as remarks, data annotation, highlights, sticky notes, and more to distribute updates and announcements to your clients in shared PDF documents and other media, improving your image in the market. 

It will help you attract and acquire new customers through referrals and positive word of mouth. Your brand can come across as reliable, credible, and highly authenticated with document verification practices.

2. Update compliance and adhere to regulations  

Document verification is a crucial task for any organization to stay updated and adhere to state or national laws. Otherwise, businesses might pay hefty penalties. 

By getting documents verified through various online mediums, companies can be assured that they are doing business with good intentions. The same is true for the other party involved in the contract.

Moreover, with updated verification, the company owners will not be caught in fraud, duplicity, or forgery.  Rather, they will have updated information for any investor, employee, vendor, or client. This helps streamline the firm’s audit process in the long run. 

3. Reduce the risk of contract breaches or fraud

When you implement digital signatures through features offered by Xodo Sign, you can reduce the risk of fraud. Employees, investors, vendors, or clients can unlock this feature with multiple user access. 

Let them sign the necessary contracts to validate their acknowledgment. Then, you will know that the message delivered is understood in the same notion and context. This is a way to validate the contract and its legal terms for the defined period. 

It also means that after signing the contract digitally, both parties are bound legally. They will be more conscious and aware of not committing any breach or fraud. 

4. Check a candidate’s experience and skill set to validate it

Documents verification comes to rescue the organization from bad hiring practices. They become aware of the blacklisted candidates. Then, they will know how and whom to hire for the progress of their organization to the ultimate potential. 

With a document verification procedure, businesses will hire people with valid proof of their past experiences, employment journeys, qualified skills, projects, etc. 

Businesses also detect if any candidate is already stuck in legal issues through document verification. Then, they can move past such troublesome candidates and hire those who are highly eligible from the get-go.

5. Avoid inefficient partnerships and alliances

Businesses must conduct document verification to understand the full potential and capacity of a future partner. If the prospect is not efficient and reliable enough, the employer can prevent the business from closing a lose-bearing deal. 

This will help identify fraudulent players in the market. Companies can then steer clear of these and filter the opportunities for profitable partnerships in the future. 

6. Onboard candidates swiftly and smoothly

Is your company hiring remote workers or planning to in the future? Then, online document verification can help complete the onboarding seamlessly with quick background and national ID card checks. 

The system immediately detects any defaults in the security number, passports, or income statements. Thus, you can easily ask for revised and updated documents from the candidate or recognize unfit ones from the lot. 

7. Necessary to complete KYC and AML requirements

Document verification is a mandatory step when updating and completing KYC and AML requirements. Get it done to avoid paying penalties to the government if the audit remains incomplete. 

Such verification helps prevent fraud, theft, and financial crimes while dealing with third parties and new employees. 

8. Avoid human or clerical errors

Opt for digital document verification to avoid human errors like:

• Omission 
• Duplicate entries
• Inaccuracies

The online verification process involves a few clicks or scanning important documents with QR codes. It reduces the need for human intervention. HR staff can then supervise the final results and proceed with closing the contracts. 

As and when you avoid human errors, tasks like KYC, preboarding, proposals, negotiations, etc., have a faster turnaround time. It improves an organization’s reputation as well in front of new candidates and clients. 

Ready to switch over to a smarter document verification system?

Slide into the era of online document verification whether through automated preboarding, digital signatures, or quicker BGV add-ons. Understand the principles of this document verification from the post above. 

Learn why this process is important and start implementing it. Find the best background and document verification applications online. Be the best in your league of businesses to draw good clients and candidates at all times.